Co-ordination Mechanisms and Intensity of Integration Matter for the Duration and Success of Mergers

Failed mergers are often attributed to „corporate culture problems“ – this statement is now almost regarded as commonplace. However, because these difficulties can rarely be differentiated between, this reference is unsatisfactory and in the worst case could even be used as an excuse. This contribution clarifies and summarises the discussion by dividing mergers into four ideal-types according to the intensity of integration and the primary co-ordination mechanisms of the organisations involved. On the basis of analyses of press reports statistically significant statements can be made regarding the duration and success rate of integration: (a) the medium integration duration in „loose“ mergers is shorter than in a complete integration. (b) if the partners primarily co-ordinate on a personal level, the likelihood of success is higher than when at least one of the partners co-ordinates on a non-personal level, and (c) the integration duration is shorter. Complete integration when at least one of the partners primarily co-ordinates on a non-personal level has proved to be particularly problematic in terms of duration and success. This could mean a fundamental clarification of the “Culture Problem Thesis”: What are considered to be culture problems in a close merger, could, on closer inspection and for the most part, be linked to the poor compatibility of the primary co-ordination mechanisms which the partner used before the merger.